Governor Burgum Signs Landmark Infrastructure Funding Legislation

Governor Doug Burgum signed legislation Wednesday that provide $250 million to help cities, counties and townships in non-oil producing counties pay for infrastructure needs. Burgum also used the bill signing as an opportunity to urge local leaders to invest the dollars in existing infrastructure areas to limit the growth of property taxes. 

House Bill 1066, also known as "Operation Prairie Dog", passed 80-12 in the House and 46-0 in the Senate. 

The key components of HB 1066, is the distribution of oil and gas tax revenues, creating new “buckets” to set aside revenue for counties, cities and townships in non-oil producing areas. Starting in the 2021-23 biennium, the bill will direct $115 million to cities, $115 to counties and townships, and $20 million for an airport infrastructure fund. It also preserves allocations for oil-producing areas and removes the sunset on the “hub city” designation that directs additional oil tax revenue to Dickinson, Minot and Williston.

"The greatest feature of this bill is that it does not include a sunset, meaning this formula will provide funding long-term to our local political subdivisions," said NDACo Executive Director Terry Traynor. "Our counties, cities and townships will have the opportunity to plan ahead knowing funding will be attained. This bill allows them to save their allocations and apply them to meaningful projects they otherwise may not have been able to do without burdening citizens with special assessments or property taxes." 

“One of the pillars of our Main Street Initiative is smart, efficient infrastructure, and we know communities across North Dakota have significant infrastructure needs. We also support local control, and this bill gives communities enormous latitude to use this bounty of oil tax revenues. If used wisely, these grant dollars represent a golden opportunity to improve the economics of cities, limit the growth of property taxes and create healthy, vibrant communities, enhancing the quality of life for all North Dakotans,” Burgum said.

The law requires the funding be used for essential infrastructure projects, which includes roads, bridges water and sewer lines, and electricity and natural gas infrastructure. 

"The Governor as well as Legislative Leadership acknowledged the strong support and assistance from county and city leaders in designing a workable infrastructure package," Traynor said. “State Government has been a solid partner through the years in addressing local infrastructure needs, and this bill is an excellent example of that partnership.”